Exercise 5A-4 High-Low Method; Scattergraph Analysis [LO5-10]

[The following information applies to the questions displayed below.]

Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense:

Month	Units Shipped	Total Shipping Expense
January	4	$	1,900
February	7	$	2,400
March	5	$	1,800
April	6	$	2,100
May	8	$	2,400
June	9	$	2,700
July	2	$	1,300

Exercise 5A-4 Part 2

2. Using the high-low method, estimate the cost formula for shipping expense.

-Variable shipping expenses

-Fixed shipping expense